Wooden pallets manufacturer Leap India plans to increase its topline by over seven times in three years by trebling production capacity to meet its rising demand from corporate customers like Amul, Coca Cola, Modelez, Nestle and Flipkart.
The city-based supply chain solutions company Leap India plans to achieve revenue target of Rs 280 crore by 2020. Currently, the company with employment of over 200 skilled and unskilled workers, supplies about one million pallets made from Russian-imported wood with the help of equipment pooling and returnable packages. The company achieved its topline of Rs 37 crore during the financial year (FY) 2016-17 and doubled revenue from its operations in each of the last four FYs.
"Leap India recently raised Rs 110 crore from private equity players like Mayfield, IndiaNivesh, Sixthsense and TCI Ventures. They had already raised Rs 50 crore and debt and is expected to close another Rs 100 crore. This investment will take company's pallets to three million by 2020, which would generate Rs 280 crores revenues for the company," said Sunu Mathews, managing director, Leap India.
Indians practice traditional method for the movement of goods. For example, a truck full of goods requires 14 workers and 3 hours to load and offload it. However, palletising requires forklifts for moving huge amount of goods; hence, the hefty three hours are reduced to just 30 minutes, which in turn saves a lot of time and effort and saves on additional costs. The use of pooled pallets will save capital expenditure for corporate that has been using their own pallets for a long time, he added.
Pallets are the structural foundation of a unit load, which allows handling and storage efficiencies. And, Palletisation is a process of safely transporting the goods from factory to customers efficiently by reducing the number of labour requirements and time resulting in a rise of operational efficiency, on-time delivery and more visibility of products on a shelf.
Founded in the year 2013, the company is currently working with more than 200 leading corporate spread across food, fast-moving consumer goods (FMCG), e-commerce, pharma, automobiles etc.